BLOOMINGTON, Minn. – Six Minnesota credit unions recentlyweighed in on their concerns with NCUA's proposed changes to theagency's member business lending rules. The credit unions got theirsay during a May 23 conference call with CUNA Senior RegulatoryCounsel Catherine Orr. CUNA's deadline for feedback on its commentletter was June 3, while NCUA's deadline was June 20. The mainissue with the MBL proposals were that they would cause creditunions to go over the 15% net worth capital cap, said RobbieThompson, associate general counsel for the Minnesota Credit UnionNetwork, who also participated in the conference call. “They're(also) searching for further clarity especially in the area ofimprovement and income producing,” said Thompson. NCUA is aiming toamend the definition of construction or development loan to includeloans for renovating or developing property owned by a borrower toproduce income. It has also proposed to clarify what would be theminimum capital requirements a federally-insured corporate creditunion must meet in order to make unsecured MBLs to non-membercredit unions and corporate CUSOs. Within that same proposal, NCUAis also asking for feedback on how it can broaden its MBL rule toallow CUs to participate in other government guaranteed loanprograms and revise the phrase, “net worth” used in the MBL rule tobe consistent with the definition of that phrase found in theFederal Credit Union Act and in NCUA's prompt corrective action(PCA) regulation. “This is the time for feedback,” Thompson said,adding MCUN will be submitting a comment letter to [email protected]

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